Ferrari reveals its first all-electric vehicle.

Luxury sports car manufacturer Ferrari has introduced its first fully electric vehicle, the $640,000 (£474,320) Luce.

This new model diverges from traditional Ferrari designs as it is the brand's inaugural five-seater, developed in collaboration with the LoveFrom agency, led by former Apple design chief Sir Jony Ive.

Reactions on social media to the reveal have varied significantly, with some calling it "junkyard trash" while others praise it as an "absolute masterclass in design."

Rival supercar manufacturers like Lamborghini and Porsche have reduced their electric vehicle plans due to low demand and fierce competition from Chinese automakers.

Ferrari's CEO Benedetto Vigna announced in Rome that the Luce, which means "light" in Italian, took five years to create.

The company now intends to introduce this electric vehicle after initially dismissing the idea, focusing instead on hybrid models powered by both petrol and electricity.

The Luce features an electric motor developed by Ferrari at each wheel, enabling it to achieve speeds of 60mph (96km/h) in about 2.5 seconds.

Ferrari stated that all components are produced in-house, allowing for future repairs by the company, which helps maintain the Luce's resale value.

The transition to electric vehicles by major automakers has encountered significant challenges in recent years.

Companies like Ford and Volkswagen have reverted to petrol cars, particularly in the US, due to low demand and changes in regulations under President Donald Trump, who has reduced incentives for electric vehicle buyers.

Jaguar's electric concept car was met with criticism for abandoning the brand's classic aesthetics, a sentiment echoed in the reception of Ferrari's Luce.

One social media user remarked: "Ferrari just killed their brand just like Jaguar did. This is straight to the junkyard trash."

Another user questioned: "What is going on with European luxury car manufacturers? First Jaguar and now Ferrari."

However, not all responses were negative; one comment expressed: "Absolute masterclass in design. Ferrari just unveiled the breathtaking LUCE concept, and it is a total game changer."

Ferrari's chief design officer Flavio Manzoni commented in an interview with YouTuber Cleo Abram that critics are an essential part of the innovation process.

He recognized that the idea of an electric Ferrari with a fresh design might be "polarising," but he believes people will come to appreciate it over time.

Ferrari also confirmed it will continue offering petrol and hybrid vehicles alongside its all-electric model.

In contrast, Ferrari's competitors have scaled back their electric vehicle aspirations.

Lamborghini has abandoned its plans for all-electric cars, shifting instead to hybrids due to low interest in high-end luxury EVs.

Porsche has reduced its electric vehicle strategy amid weak demand, impacted by lackluster sales in China and tariffs in the US.

Western automakers are grappling with significant competition from Chinese manufacturers, who can produce vehicles more quickly and cost-effectively.

Ferrari stands as Europe’s most valuable carmaker, relying on exclusive sales—a strategy that has helped insulate it from some of the pressures facing its rivals.

Nevertheless, Ferrari's shares have fallen by over 25% in the past year, reflecting a broader decline in luxury brands as global inflation has affected demand for high-end goods.